Correlation Between Intuit and Citrix Systems

Can any of the company-specific risk be diversified away by investing in both Intuit and Citrix Systems at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Intuit and Citrix Systems into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Intuit Inc and Citrix Systems, you can compare the effects of market volatilities on Intuit and Citrix Systems and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Intuit with a short position of Citrix Systems. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intuit and Citrix Systems.

Diversification Opportunities for Intuit and Citrix Systems

0.25

Correlation Coefficient

Intuit  Citrix Systems

Modest diversification

The 3 months correlation between Intuit and Citrix is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Intuit Inc and Citrix Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Citrix Systems and Intuit is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Intuit Inc are associated (or correlated) with Citrix Systems. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Citrix Systems has no effect on the direction of Intuit i.e., Intuit and Citrix Systems go up and down completely randomly.

Pair Corralation between Intuit and Citrix Systems

If you would invest  10,390  in Citrix Systems on January 20, 2024 and sell it today you would earn a total of  0.00  from holding Citrix Systems or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	4.55%
Values	Daily Returns

Intuit Inc  vs.  Citrix Systems

Intuit Inc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Intuit Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Intuit is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Citrix Systems

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Citrix Systems has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Citrix Systems is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Intuit and Citrix Systems

The main advantage of trading using opposite Intuit and Citrix Systems positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intuit position performs unexpectedly, Citrix Systems can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Citrix Systems will offset losses from the drop in Citrix Systems' long position.

The idea behind Intuit Inc and Citrix Systems pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Volatility Analysis module to get historical volatility and risk analysis based on latest market data.